The N.C. Foreclosure Prevention Fund is offered by the North Carolina Housing Finance Agency, a self-supporting state agency, using funds provided by the U.S. Treasury.

Get Help with Your Mortgage Payment

Over the past few years, thousands of North Carolinians have lost their jobs due to a slow economy. Many homeowners - perhaps you are one of them - have found it very difficult to keep making their monthly mortgage payments and are in danger of losing their home.

The N.C. Foreclosure Prevention Fund offers a Mortgage Payment Program to North Carolina homeowners who are struggling to make their mortgage payments due to job loss through no fault of their own or other temporary financial hardship, such as a divorce, serious illness, or death of a co-signor. Services are provided by HUD-approved counseling agencies statewide.

You may qualify for the Mortgage Payment Program if you:

  • are unemployed or a veteran
  • are earning less than you have in the past or are experiencing a furlough
  • are seeking new employment to recover from a temporary financial hardship (for example, you have lost income due to divorce, separation, serious illness, or death of a co-signer)
  • are unable to pay your mortgage due to a qualified hardship but are eligible for fixed income payments (i.e., retirement, Social Security, disability, or VA benefits) that will enable you to resume your mortgage payments
  • have a good mortgage payment history prior to your recent income loss or financial hardship
  • currently owe no more than $300,000 on all your mortgages. Check with your lender to find out your balance.

To participate, you may be behind (or at risk of getting behind) on your payment, or in foreclosure. To those who qualify, the program offers zero-interest loans up to $36,000 to cover your mortgage and related expenses for up to 36 months while you search for or train for a new job.

You may be able to get help in one of three ways:
  • one-time assistance to bring your mortgage current
  • short-term assistance while you are looking for a job
  • long-term assistance while you participate in an approved job retraining program

When your application is received and your eligibility is confirmed, the N.C. Housing Finance Agency may place a temporary stay-of-foreclosure for up to 120 days so that the company that owns your mortgage cannot foreclose on your home or take other legal action while your Mortgage Payment Program loan application is under review. If you qualify for the loan, the N.C. Housing Finance Agency will make your mortgage payment directly to your loan provider or bank. At the end of the assistance period, you will resume making your mortgage payment.

If you remain in your home for 10 years, the loan will be forgiven, and you do not have to pay it back. After you have lived in your home for five years, the loan is reduced by 20 percent a year for years six through 10 until you owe nothing. You repay the total amount only if you sell or refinance the home in the first five years, and only if the sale proceeds are sufficient to repay it. Please note that if you refinance your property for better loan terms, we will subordinate our second mortgage; however, if you refinance to consolidate debt or take out cash, the second mortgage loan must be repaid.

Find Out If You Are Eligible

How the Process Works

Watch a brief and informative video: How the Mortgage Payment Program Works

Find a HUD-approved housing counseling agency near you.